The Securities and Exchange Commission today filed civil fraud charges against accused two former high-ranking Apple executives, accusing them of involvement in a stock options backdating scheme that in 2001 gave Apple CEO Steve Jobs 7.5 million shares and underreported company expenses by $40 million.
Former General Counsel Nancy Heinen and former CFO Fred Anderson were charged in the scheme, which allowed Apple executives to buy company shares at below-market prices. The SEC alleges that Heinen falsified documents to cover up the move. Anderson, who would have noticed Heinen's actions, did nothing to stop her. Both Heinen and Anderson "personally received millions of dollars in unreported compensation as a result of the backdating," according to the SEC.
Overall, Heinen and Anderson allegedly failed to record $18.9 million in "compensation expenses" associated with a 4.8 million-option grant to six senior executives. The SEC also alleged improprieties in the 7.5 million-option grant to Jobs, which resulted in $20.3 million compensation expenses that went unreported.
Photo: Salvatore Barbera
